Dynamics of Multinational Enterprises:
Assessment Brief/Task:
Although FDI can bring many benefits to host economies they also bring with them associated costs.
1. Using a range of theories critically analyse these costs and benefits that seek to explain FDI activity
2. Given there are costs that arise from FDI activity, what types of regulation have been suggested to control FDI activity?
Recommended reading and other sources:
Australian treasury, 2013, Implications of the modern global economy for the taxation of multinational enterprises.
Bauer, C.J. and Langenmayr, D. (2013) Sorting out outsourcing: Are profits taxed at a gorilla’s arm’s length? Journal of International Economics, Vol. 90, pp326-336
Devereux, M.P. and R.G. Hubbard (2003), Taxing Multinationals, International Tax and public Finance, 10, pp469-487
Egger, E. and Winner (2010) Saving taxes through foreign plant ownership, Journal of International Economics, Vol 81, pp99-108
Jansky, P and Prats, A (2013), Multinational Corporations and the Profit-shifting lure of tax havens, Christian Aid Occasional paper Number 9, March
Luo, Y. (2005) How does globalisation affect corporate governance and accountability? A perspective from MNEs Journal of International Management, 11(1), 19-41
Luo, Y. (2005) Corporate governance and accountability in multinational enterprises: Concepts and agenda, Journal of International Management, 11(1), 1-18
OECD (2013) Addressing base Erosion and Profit Shifting, OECD, Paris
Reuters (2012) Special report: how Starbucks avoids UK taxes, 15 October
Rolfe, R.J., Ricks, D.A. Pointer, M.M. and McCarthy, M. (1993), Determinants of FDI Incentive Preferences of MNEs, Journal of International Business Studies, Vol 24, No. 2, pp335-355
Verbeke, A., & Greidanus, N.S. (2009) The end of the opportunism v trust debate: Bounded rationality as a new envelope in research on MNE governance, Journal of International Business Studies, 40, 1471-1495
www.voxeu.org – Why do multinationals pay less profit tax?